1 min read

Hedgework Talk: “We will have extreme movements in currencies”

Although currencies are the largest asset class on the capital markets in terms of trading volume, many investors do not actively engage with them. This means they are missing out on opportunities. “Currencies are an untapped source of alternative returns,” says Katherina Duong-Bernet, EU Head of Business Development at Millennium Global, an asset manager specialising in currencies.

 

 In Hedgework Talk with Uwe Lill, she explains the return potential of currencies, but also why she expects increased volatility in this segment. “Because of central bank policy plus inflationary pressures and growth prospects, we will have extreme movements in currencies.” Investors can respond to this with passive or active hedging or an active overlay.

In Hedgework Talk you will learn in detail:

  • Why currencies are interesting for diversification in a portfolio

  • Why risks associated with currencies are often underestimated

  • What investors need to be aware of when hedging currencies

  • What distinguishes dynamic hedging from passive hedging

  • How currency risk premiums can be used for portfolios

  • Why the end of quantitative easing by central banks can lead to currency turbulence

  • Why it would be reckless not to deal with currency risks.

Source: Hedge Work

Pensions & Investments Interview with Mark Astley

Pensions & Investments Interview with Mark Astley

Mark Astley, Co-CEO, was recently interviewed by Sophie Baker, Program Director at Pensions & Investments, WorldPensionSummit and we are delighted to...

Read More
Monetary Policy Divergence Holds the Key

Monetary Policy Divergence Holds the Key

The webinar features Mark Astley, Co-CEO, our Lead Economist & Strategist, Piya Sachdeva and Economist & Strategist, Sandra Rhouma discussing their...

Read More